How will things pan out for gold in 2025? As can be seen, even though investors often resort to buying the commodity as a safe haven investment, the precious metal has given decent gains in 2024.
In fact, gold price is heading for one of its biggest annual gains this century, with a 27% advance. This rising trajectory has been boosted by US monetary easing, sustained geopolitical risks, and a wave of purchases by central banks, according to Bloomberg.
And things likely to continue. “Moving ahead, this investment demand is expected to remain strong. However, due to the impending inauspicious period for gold purchases, the demand for jewellery may witness short-term pressure,” said Shah.
Shah also added that with the current price dynamics, his long-term view of gold remains positive. In fact, he indicated it may even touch levels of $3,000, but it may well be marked by bouts of volatility and price correction.
The positive outlook on gold is also shared by Gupta who has recommended a 10-15% allocation for investors in their portfolio. He also revealed the strategy that investors may consider.
“We believe that investors should stay long in gold and use corrections as a good buying opportunity. For Investors, we recommend taking a long position in gold futures around 74,000 to 74,500, with an upside target of 79,900 to 82,000, and maintaining a stop loss below 70,000,” said Gupta.
Gupta also shared insights on buying and holding trends. He said that long-term inventors preferred gold bonds and physical gold, while short-term investors and swing traders preferred gold ETFs. The short-term investors have taken this route in an attempt to capture short-term technical opportunities.
